Xiaomi Corporation (XIACF)
NEUTRALFundamental
66
Price
$3.55
Market Cap
$95.49B
Part 1 · What the company is worth
Overview
Xiaomi sells smartphones and a wide range of connected home and lifestyle gadgets — from televisions and rice cookers to robot vacuums and wearables — designed around an affordable-but-capable positioning rather than a premium one. Since 2021 it has added a third leg: electric vehicles, sold under its own brand and manufactured through its own plants. The strategy across all three is the same: sell hardware at thin margins to build a large user base, then earn additional profit from internet services layered on top.
How it makes money
Most revenue is one-time hardware sales — a phone, a TV, a car — recognized when the product ships or is delivered, at gross margins that are thin on smartphones and improving but still modest on EVs. Internet services revenue, from advertising shown inside Xiaomi's software and from fees on services like gaming and finance offered through its apps, carries a much higher margin and grows with the size of the installed device base rather than with new unit sales.
Revenue by segment
Xiaomi-branded phones sold globally at a range of price points; the largest segment by revenue but the one growing slowest, with shipments essentially flat in 2025.
Connected home devices and everyday consumer electronics sold under the Xiaomi ecosystem, a record revenue segment in 2025.
Xiaomi's own electric vehicles, its newest and fastest-growing business, more than tripling in revenue during 2025.
Advertising and service fees earned across Xiaomi's software and apps; the smallest segment by revenue but the highest-margin one.
Competitive moat
Switching costs · NarrowOwning several Xiaomi devices — phone, TV, smart-home gadgets — that connect and control each other through Xiaomi's own app creates a mild lock-in: switching brands means losing that integration. It is a real but narrow advantage, since the underlying hardware itself is commoditized and can be matched by Samsung, Apple's ecosystem, or a wave of other Chinese electronics makers on price or features.
What drives demand
CyclicalSmartphone and consumer electronics demand tracks discretionary household spending and replacement cycles that lengthen when budgets tighten, while the new EV business depends on far larger, more cyclical purchases tied to consumer confidence and, in China, to competitive and regulatory conditions in the auto market. Internet services revenue is steadier, since it depends on the existing device base rather than new purchases.
The case for
Buyers point to the electric-vehicle business, which more than tripled in revenue and turned profitable, as a new growth engine layered on top of a stable IoT and internet-services base, and see the connected-device ecosystem as a reason customers keep buying more Xiaomi products over time.
The case against
Sellers worry that the core smartphone business, still the largest segment, is barely growing and faces persistent margin pressure, and that scaling a capital-intensive car business inside a crowded and heavily subsidized Chinese EV market carries execution and competitive risks the phone business never had to face.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$632.80B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Net Income
$27.36B
Trailing 12 months to the last reported quarter — estimated from per-share metrics
Free Cash Flow
$-8.15B
Total Equity
$33.19B
Total Liabilities
$39.28B
Current Ratio
1.49
Interest Coverage
-
Debt/EBITDA
1.37
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$4.41
Current Price
$3.55
Margin of Safety
+19.5%
Fair Value Range
$2.87 - $5.96
Estimation Methods
Valuation Metrics
P/E Ratio
2.80
ROE
12.6%
P/B Ratio
0.35
P/FCF
-
Gross Margin
12.5%
ROIC
19.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
19.2%
WACC
13.6%
ROIC − WACC
+5.6 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (13)
- Price CAGR 9.10%
- ROIC 19.2%
- P/B Ratio 0.35
- Debt/Equity ratio
- Operating Margin 5.1%
- Current Ratio
- Debt/EBITDA
- Price below Graham Number
- ROE 16.3%
- Revenue Growth 5Y 13.2%
- Analyst Consensus 78% Buy
- PEG Ratio 1.24
- Net Margin Trend 9.1% vs 6.4%
Failed (6)
- Gross Margin 12.5%
- Positive Free Cash Flow
- DCF valuation (Unknown)
- Earnings Surprise avg 2.0%
- Earnings Quality (OCF/NI) 0.20
- Piotroski F-Score 1/9
Unavailable (8)
- EPS data insufficient
- P/FCF NaN
- Dividend Payout NaN%
- CapEx intensity
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Jun Lei | Founder, Chairman & CEO | 56 |
| Mr. Bin Lin | Co-Founder & Vice Chairman | 57 |
| Mr. De Liu | Co-Founder, SVP, Head of Organization Department & Executive Director | 52 |
| Mr. Weibing Lu | Partner, President of the Group & President of the International Business Department | 49 |
| Mr. Wanqiang Li | Co-founder, Senior VP & Brand Strategy Officer | 48 |
| Mr. Sai Wai Lam | Vice President & CFO | 50 |
| Mr. Sudhin Mathur | Chief Operating Officer | - |
| Anita Chan | Head of Investor Relations & Corporate Finance | - |
| Ms. Yan Qi | Senior VP of Leading Platform, Internal Operations & Public Affairs | 76 |
| Mr. Xuezhong Zeng | Senior VP & President of Smartphone Department | 52 |
Audit Risk
1
Board Risk
8
Compensation Risk
10
Shareholder Rights Risk
10
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for XIACF, sourced from Markets Gazette.